Today’s front page of the RGJ had an article describing the relocation of a pair of downtown, 93-year-old Victorian houses. Read The houses were moved from north bank of the Truckee River at the corner of Washington Street and Riverside Drive. If you happened to have read the entire article you would have learned that the homes were being moved to make room for a new a three-story, 11-unit condominium complex, called Ponte Vecchio. Last month I posted a short blurb about Ponte Vecchio, but at the time did not have much info on the development. This week I had the opportunity to meet the developer, Mike Mardian, of Mardian Development.
Mr. Mardian was presenting a couple of his newest custom homes, located in Montreux, to a group of agents from our office. After his presentation Mardian told our group about his newest project downtown, Ponte Vecchio. Mardian is very excited about this project and described the units as “very high-end” and “unlike anything currently being developed downtown”. He also said the finishings and craftsmanship used throughout the $3M custom homes that we had just viewed would be integrated into these condo units. And I can affirm that if he pays attention to detail in these condo units the way he has on the two Montreux homes he has for sale, then Ponte Vecchio should be a very well done project. To see some examples of Mardian Development’s craftsmanship check out their website here.
After describing the Ponte Vecchio project, Mardian opened the floor to questions. When asked about pricing, he responded that pricing was still being determined, but that units would range from $400K to over $1M. When asked what his thoughts are regarding downtown development, he stated he remains very “bullish” on downtown Reno. He said the city has laid out a good roadmap for downtown development and that he is willing to invest in the long-term future of downtown Reno. He also reminded our group how far in advance developers must plan when contemplating their projects. When one considers the time required to acquire land, draw up plans, receive approval from all interested parties, etc, he said he often needs to think 8 – 10 years ahead for his next project.
Now that the houses have been moved, Mardian will submit his construction plans to the city May 1. He plans to begin taking pre-sale reservations on May 15, and hopes to break ground sometime in August.
P.S. Mike (from Downtown Makeover), if you’re reading, Mr. Mardian had only the nicest things to say about your web site and your mission. For all the other readers, Downtown Makeover has a Ponte Vecchio brochure available in .PDF format here.
BanteringBear
Hi Guy,
Did Mr. Mardian happen to mention who his target customer is? Is he using his own cash or does he need to pre-sell some units in order to be funded? Did he express any concerns regarding the glut of condos on the market and in the pipeline? Did anyone who was present discuss the current market conditions? Boy, I would have had a ton of questions for this guy. I’d like to get into his mind and know what it is that he sees and I don’t, because some of these projects seem like financial suicide.
Mike Van H
Hi Guy! I read yours and Diane’s blog religiously….that’s really nice of him to say. I am very bullish about downtown as well, and share his long-term vision.
I think Guy hit the nail on the head with his post when he said that developers have to look beyond the current market conditions when planning their projects. The real estate market will not be in a slump forever, eventually, even if it’s two years from now, it will balance out. I wouldn’t say there’s a glut of condos on the market, compared to how many homes are on the market, especially since several condo projects have been postponed. I think the smaller projects in the pipeline will ultimately be the winners, like Ponte Vecchio or the new one going in across from Pioneer Theater (another project with 11 condos and retail space on the bottom floor). After all, it’s easier to sell 11 condominiums than 499 (Wingfield Towers).
BanteringBear
“I wouldn’t say there’s a glut of condos on the market, compared to how many homes are on the market”
That’s not a comparison which matters. What matters is the absorption rates for condos.
“After all, it’s easier to sell 11 condominiums than 499 (Wingfield Towers).”
While I understand the point you’re trying to make, your statement is not necessarily true. Price points matter. When you look at high end stuff, be it houses or condos, it generally takes much longer to sell because of the much smaller pool of buyers. I suppose the silver lining is that the uber wealthy fair much better in a down economy.
I would like to say that I think it’s great that you, as well as many developers, are bullish about downtown. Having been raised here, I would love to see it become more of a destination for locals, and not just tourists. One of the greatest challenges will be to mitigate the homeless problem, and provide a more relaxing and safe environment for people in general.
Mike Van H
Hey Bantering Bear thanks for correcting me and the kind words. I am not a real estate agent, broker, developer, etc, so myself like a lot of other non-industry people have misconceptions about how the market works sometimes. I just figured if you had 11 condos, priced around the same price points as Wingfield Towers ($400,000+) and both considered ‘luxury condos’, it would take less time to find 11 buyers than 499 buyers.
NVMojo
Just wondering if there is an update on the status of downton condo projects since the ones made in the Comments section in February here:
/2007/02/reno_downtown_c.html
While not ready to buy for a few months (apartment lease) we are starting to just look.
Thanks.
Grand Wazoo
I’d really like to get an informed update on the downtown Reno condo market – a place my wife and I would like to buy once we get the full picture.
Palladio – 23 units still listed months after Dickson Realty put them on the market. The roof has been incomplete for quite a while now, and not many crews are visible working there during the week, at least when I walk by. What is happening?
8 On Center – it appears all 8 units are listed by Dickson, none sold? These things look fantastic, but the pricing seems out of sync with the market.
Montage – again, pricing seems out of sync with the Reno market. Anyone have some info on sales?
Arterra? Anyone, anyone, Bueller?
Diane & Guy – a comphrehensive downtown condo project update is about due!
Guy Johnson
As always, great commentary, guys.
BanteringBear, your questions for Mr. Mardian make me want to set up an interview with him. I’ll explore this and see if he’d be receptive. If so, I’ll ask our readers to submit their questions for him. [If I get *really* ambitious, perhaps I’ll do a podcast. No promises.]
Mike Van H, thanks for reading and thank you for your comments. We like your site too.
NV Mojo and Grand Wazoo, good idea. An update to the downtown condo market is forthcoming. Give me a couple days or so, though.